Dynamic Cables Limited — Interim / Quarterly Report 2024

Jul 31, 2023

Naina Gupta

Digitally signed by Naina Gupta Date: 2023.07.31 18:04:23 +05'30'

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Powering the Growth

     - **Revenue up 15 % YoY**

• Margin Expanded to 11.3%, up 230 bps YoY

  • PAT increased by 59% YoY

• Healthy Order Book of Rs 394 Crs

July 31[st] , 2023, Jaipur: Dynamic Cables Limited (DCL), today announced its result for Q1FY23 ended June 30[th] ,2023.

Financial Performance: (Rs. Crs)

Financial Performance:					(Rs. Crs)
Particulars	Q1FY24	Q4FY23	Q1FY23	FY23	FY22
OperatingRevenue	181.3	178.5	158.0	668.6	563.6
OperatingEbitda	20.5	19.0	14.2	62.8	59.8
OperatingEbitda %	11.3%	10.6%	9.0%	9.4%	10.6%
Finance Cost	4.4	4.9	3.4	16.2	13.0
Depreciation	2.0	2.1	1.8	7.9	8.1
Other Income	0.9	1.2	0.5	3.1	2.7
PBT	15.0	13.1	9.6	41.7	41.5
Income Tax	3.6	3.1	2.4	10.7	10.6
PAT	11.4	10.0	7.2	31.0	30.9

Commenting on the results, Mr. Ashish Mangal, Managing Director of Dynamic Cables Limited commented: “We are delighted to report strong performance in the first quarter of FY 2023-24, with a 15% increase in revenue and 59% increase in PAT compared to the previous year same quarter. In the quarter gone by we did exports of Rs. 57.5 Crs which was significantly higher as compared to our historical trends. We foresee a healthy business environment and long-term demand growth for power cables driven by multiple macro tailwinds.”

Financial Highlights:

Q1FY24:

• Revenue growth was at 15% YoY and 2% QoQ

• EBITDA Margin @ 11.3%, growth in the margins on both YoY and QoQ basis were on account of favorable revenue mix and softening of input cost

• Debtors outstanding as on 30[th] June 2023 was Rs. 180.5 crs

• Receivable days (calculated on trailing 6 months gross sales) were at 77 days vs 83 days in Q4FY23

• Order book stands at Rs 394 Crores vs Rs 331 Crs as on 31[st] March 2023

 Borrowing:

Borrowing:
Particulars(Rs. In Crs)	30th June 2023	31st Mar 2023
Term Loans from Banks/FIs	13.7	15.6
Other Loans	2.2	3.5
WorkingCapital Loans	62.1	63.1
Total On-balance sheet Debt	78.0	82.2
LC Creditors(Off- balance sheet)	65.7	81.3
Total Borrowing	143.7	163.5

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Outlook:

• India’s economy exhibited remarkable resilience amid global volatility with key indicators showing a sustained momentum as such Indian economy is on the path to be the fastest growing economy in the world

• Favorable macro-economic environment along with supportive structural measures, increase in private capex, import substitution and opening up of export markets have translated into healthy demand for our product range

• The government of India through utilization of budgetary allocation, various policy initiatives and reforms like Gati Shakti National Plan, Revamped Distribution Sector Scheme (RDSS), Deendayal Gram Jyoti Yojana (DDUGJY) continued its fiscal support which augurs well for the cable industry.

• The government emphasis on the infrastructure development projects, which includes highways, energy, railways and metro constructions, roads, ports and airports and apart from Greenfield, the modernization of the existing infrastructure projects structural demand for higher and more efficient, T&D infrastructure, to improve the cost distribution capabilities of the power distribution company is leading to increased demand of wires and cables.

• The central government had announced various positive policy reforms towards Renewable energy including adding 50 GW of renewable energy capacity annually for next 5 years to achieve the target of 500 GW by 2030 towards renewable energy and put up an ambitious target of achieving net zero by 2070, we believe these measures will bring a fillip to the demand for the cable & wire segment for a long term.

• As the consumption has improved the private sector has also increased its capex plan and are undertaking substantial investment towards capacity enhancement and expansion.

• Demand environment continued to remain encouraging on the back of increasing investments in energy intensive industries, such as iron steel, aluminum, cement, fertilizers and refineries.

• Our new product portfolio has started to contribute favorably in our sales growth and margins. Going forward our focus will be on growing there share in overall revenue on a sustainable basis

• We believe that various new segments such as electric vehicles, exports, railway electrification, renewable energy, etc. will evolve as sizeable business opportunities for the company.

About Dynamic Cables Ltd.:

Dynamic Cables Ltd. is manufacturer of power infra cables that includes LV, HV, MV, EHV, Power control & instrumentation cables, and signaling cables. It supplies cables to Government Discoms, Private Distribution companies, Private EPC contractors, industrial and Export clients. Company has 3 manufacturing plants are situated at Jaipur and Reengus. Business operations are managed through corporate office in Jaipur and 5 regional sales offices across India.

Disclaimer:

Certain statements in this press release may be forward-looking statements and/or based on management’s current expectations and beliefs concerning future developments and their potential effects upon Dynamic Cables. The forward-looking statements are not a guarantee of future performance and involve risks and uncertainties and there are important factors that could cause actual results to differ, possibly materially, from expectations reflected in such forward-looking statements. Dynamic Cables does not intend, and is under no obligation, to update any forwardlooking statement contained in this press release.